3 Interpretations of Bitcoin as “Digital Gold”

Bitcoin is often described as “digital gold.” While this is an oversimplification, it can be a helpful way of understanding some of bitcoin’s most critical properties — the things that “give bitcoin value.”

One of bitcoin’s preeminent use cases is in its role as a store of value, a status that gold has long embodied. Though the price is volatile, many Bitcoiners who believe in its long-term value to an increasingly decentralized society see it as a long-term investment, and citizens of countries whose economies are distressed regularly turn to bitcoin as a safe haven asset.

Bitcoin also derives much of its perceived value from the fact that its supply is strictly capped, in a similar way to natural and finite resources like gold. Then there is bitcoin mining which — while just a metaphorical term for adding transactions to the Bitcoin blockchain in exchange for a bitcoin reward — can serve as another parallel between bitcoin and precious metal.

Even though bitcoin is far from just a digital version of gold, these connections persist in the minds of new adopters and hardcore Bitcoiners alike. It has spurred a variety of initiatives, offerings and services from digital asset managers — each of which is its own interpretation of the analogy that bitcoin is digital gold.

The Drop Gold Campaign: Bitcoin as the Digital Replacement for Gold

In May 2019, digital currency investing firm Grayscale Investments launched an ad initiative known as the “Drop Gold” campaign.

As the name implies, the campaign is meant to encourage potential investors to withdraw or divest their gold investments in favor of investing in cryptocurrency or cryptocurrency-based products, such as the Grayscale Bitcoin Trust.

“The point of #DropGold is to ignite a conversation with investors through highlighting Bitcoin’s benefits, as compared to an investment in gold,” Michael Sonnenshein, managing director of Grayscale, explained to Bitcoin Magazine. “Gold is a traditional investment in a physical world but today’s world is digital and demands a digital investment.”

As much as the “digital gold” narrative might favorably imply that bitcoin has some of the more attractive qualities of the physical asset, Grayscale dismisses the comparison as actually selling bitcoin too short.

“We agree that bitcoin and gold share a lot of the same properties; Bitcoin and gold are both scarce assets, they are both decentralized assets,” Sonnenshein said. “But bitcoin posses a superior composition of ‘good money’ qualities made for a digital global economy. For example, the fact that you can send bitcoin electronically or that you can access your holdings from anywhere in the world are just a few of the traits that make bitcoin the superior store of value.”

In its online material, Drop Gold points to the fact that bitcoin ownership is verifiable via a blockchain and easier to transfer and more fungible than gold. Essentially, the fact that bitcoin puts the “digital” in “digital gold” is what makes it the superior asset. So, as far as bitcoin being digital gold goes, Grayscale might argue that this is true only in the sense that bitcoin is an evolved, digital asset that will do a better job of playing a role than gold once did.

DGLD: Tokenized Gold, Secured by Bitcoin

But there will always be those who argue that the physical can never be completely replaced by the digital. While firms like Grayscale see the future in abandoning legacy investments in favor of cryptocurrencies, there may be more room to combine the two.

The DGLD token acts as that more direct combination, embodying the digital gold quite literally.

DGLD is the result of a partnership between digital asset management firm CoinShares, multifaceted cryptocurrency service provider Blockchain and worldwide gold dealer MKS SA. It is a network with a namesake token that represents allocated physical gold stored in a Swiss vault — each DGLD token represents one-tenth of a troy ounce of physical gold.

The DGLD network was built on the Ocean Bitcoin sidechain, a network developed by the blockchain firm CommerceBlock using the same codebase as Blockstream’s federated Bitcoin sidechain, Liquid. But, instead of maintaining a federation of intermediaries between it and the Bitcoin blockchain, Ocean’s sidechain automatically attests the latest block hash into the Bitcoin network at regular intervals.

“The latest DGLD block hash is committed into a specific chain of Bitcoin transactions (the so-called ‘staychain’) which is extended every hour,” Danny Masters, the chairman of CoinShares, explained. “Each transaction in this staychain has only a single output, and so everybody can verify that the DGLD blockchain has only a single history, and a single version of ownership, with the same guarantees that Bitcoin has only a single, global history.”

In this way, the DGLD network would seem to have combined the physical scarcity and tangibility of gold with the immutability and transparency of Bitcoin — creating a blockchain asset that may be as close to a literal interpretation of digital gold as possible.

In Masters’ view, by combining certain aspects of gold and bitcoin into a unique asset, DGLD offers investors a more convenient way of investing in the former.

“Many people do not own physical gold, and instead own gold through a series of intermediaries, often in an ETF or similar format, primarily because of convenience,” Masters said. “With DGLD, you get a convenient physical gold investment that isn’t entangled in the same system of intermediaries it is meant to hedge; and because it’s gold, the investment is not tied to the monetary policy whims of a central bank or fiat currency.”

DGLD was just introduced in October 2019, so it would be hard to confirm, but it may be that many of those who invoke bitcoin as digital gold are interested in a token that can draw that comparison more closely.

Vaultoro: When Bitcoin and Gold Work Together

Of course, some may point out that only bitcoin is bitcoin — no other tokenized asset, on a Bitcoin sidechain or otherwise, has exactly the same…

Continue reading at BITCOINMAGAZINE.COM


Is XRP (Ripple) Plotting a Move Against BTC?

XRP saw a small increase of around 2% over the past week and it currently trades at $0.2995. The cryptocurrency still has hard times closing above the $0.30 level as each attempt so far has failed. Despite this,  XRP has still seen a 12.50% price hike over the past month.

XRP remains the third-largest cryptocurrency with a market cap of $13.03 billion.

Looking at the XRP/USD 1-Day Chart:

  • Since our previous XRP/USD analysis, the cryptocurrency continued to trade sideways as it remains trapped around the $0.30 level. XRP managed to rise above it during a lot of the days but pulled back to close beneath each time. It remains strongly supported by the 100-days EMA at around $0.2890.
  • From above: If the bulls can close above $0.30, higher resistance lies at $0.308 and $0.31 (200-days EMA). Above this, resistance lies at $0.3177, $0.3262 (bearish .382 Fib Retracement), $0.3371, and $0.35.
  • From below: The nearest level of support is found at $0.2890. Beneath this, support lies at $0.2811, $0.28, $0.27, $0.2584, $0.2518, and $0.25. 
  • The trading volume has diminished during the first few days of November.
  • The RSI trades along the 50 level as the bulls weakly dominate the momentum. For a break above $0.30, we must see the RSI rise further higher from the 50 level.


Looking at the XRP/BTC 1-Day Chart:

  • Against Bitcoin, XRP has been unable to overcome the resistance at the 3275 SAT level which is provided by the 100-days EMA. The coin remains supported by the 3112 SAT level, even though the market spiked much lower into the 3000 SAT region yesterday.
  • From above: The nearest level of resistance lies at 3275 SAT. Above this, resistance is expected at 3324 SAT, 3375 SAT, 3500 SAT, and 3568 SAT (bearish .382 Fib Retracement). If the bulls continue above here, higher resistance is found at 3666 SAT, 3740 SAT, and 3834 SAT.
  • From below: The nearest level of strong support lies at 3112 SAT. Beneath this, support is at 3000 SAT, 2904 SAT (short term .618 Fib Retracement), 2853 SAT (downside 1.272 Fib Ext), 2798 SAT, 2752 SAT (downside 1.414 Fib Ext), and 2710 SAT.
  • The trading volume remains low but has seen an increase over the past 2 days.
  • The RSI is beneath the 50 level which shows that the bears control the market momentum. However, this may be about to change as the Stochastic RSI is poised for a bullish crossover signal.


The post Ripple Price Analysis: XRP Fails To Close Above $0.30 But Is It Plotting a Move Against BTC? appeared first on CryptoPotato.

Source: Crypto Potato

Top 3 Ways to Earn a Passive Income from Crypto in 2019

Want to make money with almost no effort? Well, you can earn a passive income from crypto if you’re willing to make a few trade-offs.

Earn a Passive Income from Crypto

As the cryptocurrency industry matures, more services and innovations are cropping up to allow you to make the most of your assets. Just as what savers and investors do in traditional finance, crypto holders can also make their coins work for them if they want to do more than patiently HODL. 

Mining may no longer be profitable for individuals on most coins and scouting out for airdrops is a bit passe. So, here’s a list of the top three ways to earn a passive income from crypto in 2019.

1. Earn Interest on Your Crypto

If you’re willing to part with your private keys and keep your crypto on a crypto lending platform, you can earn interest on your BTC, ETH, and several other coins and tokens by opening an interest account with a company like Celsius Network or BlockFi.

The above-mentioned companies have no lock-up periods or minimum deposits. However, the amount of interest you earn will obviously vary with the number of coins you have. BlockFi, for example, pays and Annual Percentage Yield of 6.2% on 0-5 BTC, but just 2.6% on anything over 5 BTC.

If you don’t have significant crypto holdings, another way to make your money work for you would be to convert some fiat into a stablecoin such as TRUEUSD. Rather than earn next to nothing in your bank, you can get up to 10% per annum at Celsius Network. You can also take out a loan using your crypto as collateral if you need access to fiat.

Be sure to do your own research before thinking about storing your crypto on any platform. If you’re going to risk not having your private keys in cold storage, at least know who the platform’s custodian is and whether they have any sort of insurance policy.

2. Proof of Stake Coins

Many people call staking the new mining, but staking requires a lot less effort. There are several Proof-of-Stake coins beyond Tezos, Dash, Stellar, and Decred, that allow you to earn coins simply by placing them in a designated wallet or stake pool.

You can even use your exchange wallet on Coinbase and Binance to stake Tezos. Users can stake XTZ from inside their accounts, although, of course, the exchange will take a percentage of your earnings.

Staking on Ethereum and Cardano will soon become hot topics of conversation as well, as Cardano completes its Shelley upgrade and ETH makes its long-waited move to PoS.

Be sure to check out the ROIs and lock-up periods each coin requires to see if it’s worth your while. Also, remember to ask whether it’s simple passive income you want or to earn the right to vote on the network as well.

3. Lend Your Crypto

Just as with interest-earning platforms, you can lend your crypto as well. There are plenty of providers in this area including peer-to-peer lending provider CoinLoan that lets you lend out your chosen crypto with up to 12% ROI. 

You can choose your own lock-up period, from seven days to three years as well as the amount you want to loan out. A quick example, though. Loan out 35 ETH over six months and you’ll get 2.1 ETH back.

There is also Binance Lending that allows you to hold your crypto with its Lending Product to accrue interest.

Bitfinex also lets you lend out over 24 different assets including BTC, EOS, NEO, ETH, and DASH. The best rates are about 0.02% per day, which comes to around 7% a year. Although, most opportunities are for a short period of time as many traders won’t lock into a position for more than 30 days.

As with staking and interest accounts, be sure to DYOR. Not all these products are suitable for everyone. If you’re a firm believer that if you don’t have control over your private keys, you don’t have control over your coins; it’s probably better just to HODL.

What do you think is the best way to earn passive crypto income? Add your thoughts below!

Images via Shutterstock

The post Top 3 Ways to Earn a Passive Income from Crypto in 2019 appeared first on Bitcoinist.com.

Source: Bitcoininst

Bitcoin Price Tends To Go Crazy During Novembers, What To Expect On Nov-2019?

Let’s rewind the clock for two years: The phrase “November 2017” is perhaps causing some eager smiles on anyone familiar with the cryptocurrency space. It was the peak of the most famous Bitcoin bubble.

Now, let’s get back in time a year later to November 2018, a year ago. Or, if you want to be even more specific – November 14th, Bitcoin’s horror day. On that day, the Bitcoin price dropped below the significant 2018-support of $6000 and set the course for a 50% plunge in one month.

When looking at the charts for other Novembers, we can see that this specific month tends to be very volatile for Bitcoin. Apart from the one in 2018, November has traditionally been a very positive month for the cryptocurrency.

Bitcoin monthly chart (Bitstamp), November is marked. Source: TradingView

“The crypto industry is now more established than ever before and is progressing rapidly. The endorsement of Blockchain by Xi Jinping has brought a lot of excitement to the market as have the new Bitcoin futures options from some of Wall Street’s biggest players.”, Mati Greenspan, eToro’s senior analyst, was seeing some reasons why this current November could also be promising.

“November has historically been a very volatile month for Bitcoin, and this November could be as critical as ever.”, According to the famous Bitcoin analyst Tone Vays.

“November could be promising” – Mati Greenspan, Toney Vays and The Moon Carl

Raging Months of November

Let’s have a metaphorical journey back in time and see how Bitcoin price performed in the months of November so far, starting in 2012, as the first Bitcoin exchanges popped up and enabled BTC trading. Data refers to the veteran Bitstamp exchange.

In 2012 November the price was fairly low, but that also has to do with the fact that Bitcoin, back then, wasn’t really popular. The month opened at $11 and closed at slightly above $12, representing an increase of 13%. However, the price candle saw a broader range of $10.25 – $12.74.

Back in 2013, or the first major Bitcoin bubble, followed by the cryptocurrency’s 460% monthly surge. Bitcoin started the month trading at around $204 and ended at $1150. It took Bitcoin 14 months of a bear market to return to the $200 price area.

November 2014 was one that kicked off great for Bitcoin’s price, surging from $310 to more than $450 in a few days. However, things went slightly downhill from there, and the month ended up with Bitcoin closing $380, which was still a decent increase of roughly 25%.

November 2015 was reasonably similar to the previous year. In fact, the month started trading at roughly $300 again and shot up to $470 in the first few days after displaying a similar pattern and pulling back to $370.

The following year, 2016, Bitcoin’s price went on an actual rollercoaster. November saw numerous swings of around 10%, all of which were sudden and in a matter of days. However, after all that, Bitcoin started at about $710 and ended at $730, marking an insignificant increase.

And there comes November 2017: It was the landmark year for Bitcoin because it reached its current all-time high in late December of that year. This movement, however, was predicated on an exciting November, where Bitcoin went from $6,400 to end the month of $9,300.

And finally, for now, we arrive at last year’s horrific turn of events. The year of 2018 was bad enough on its own, November of last year was the first negative ROI November in seven years. After seeing $6544 as a monthly high, Bitcoin plunged to $3474, losing 47% of its value. November closed with some optimism roughly above $3900.

To sum it up, 6:1 to the Bulls in the consecutive Novembers since 2012, but the taste is still the one of last year’s, the only Bearish November.

Bitcoin is Getting Ready For November 2019: What To Expect

This year we step into November after a memorable October with notable price actions. After weeks of consolidation, Bitcoin headed south by plunging to $7,300 in just hours, but a few days later, it gained 42%, reaching $10,350. The market retraced to $9,200-$9,400 and remains quite calm since then.

November 2019 is here.

“I am still skeptical of this 2019 rise, but if we can go above $10,000 this month, we can easily set off a FOMO into halving. However, a drop back below $8,500 this month opens the door for a catastrophic drop closer to the 2019 lows in early 2020 then the all-time highs.” Tone Vays added to CryptoPotato.

Of course, it’s worth noting that previous price action shouldn’t be accepted as an indicator of what’s to come. This is something that Carl Eric Martin, better known as the popular YouTuber The Moon, reiterated.

“I believe that a big November move is coming. However, I don’t rely on previous price action to come to that conclusion. The reason why a big move is coming is because of the previous massive 40% spike Bitcoin got, that penetrated the 200-day moving average line. I was one of the very few people still being bullish before the big spike, and I’ve been calling for a move to at least $11,500 since before the spike.”, as been said by The Moon.

He also said that he expects a large continuation move in November that would follow the big 40% spike back in October. He emphasized that the fact that Bitcoin is back above the 200-day moving average line has been the signal he’s been looking out for and that he’s currently long on Bitcoin.

But Not everyone believes in the Magical November theory: Greenspan sees it just like any other day. He also said that he hadn’t seen any conclusive evidence that a specific day of the week or month of the year is any more significant than the one that proceeded it, concluding that “if November is anything like October, we’ll be in for an amazing ride.”

The post Remember November: Bitcoin Price Tends To Go Crazy During Novembers, What To Expect On Nov-2019? appeared first on CryptoPotato.

Source: Crypto Potato

What is next for XRP? Is it time to Buy?

The Swell conference, which is hosted by Ripple and is its biggest conference of the year, will be held on Nov 7-9 in Singapore. It aims to bring in influential voices in the financial services, technology, and payments industry in order to discuss the current global payments industry. Will it have an effect on the XRP price?

MoneyGram has previously reached a partnership with Ripple in order to improve its liquidity management and operational efficiency. Additionally, the CEO of Moneygram is set to share insights from this experience and the future of the transfer payments industry at the Swell conference — further increasing the importance of this partnership.

Additionally, since the history of the previous price movement has been interesting before the conference, now is a good time to look at the current XRP price movement.

While the XRP price decreased significantly against Bitcoin (BTC) during the October 25 increase, the technical outlook does not seem bearish. If XRP weathers the storm and holds support above 3000 satoshis, it is likely to make a higher high.

However, cryptocurrency trader @thecryptocactus stated that the XRP/BTC pair has significantly more downside potential after its breakdown from the support line.


showing huge downside in its BTC pairing after breaking down from this longterm trendline support.

Price wicked down to 0.618 fib level before hunting for stops and finally finding some candle close at the 0.5 fib line.

Expecting price to range between 0.5/0.618 fib level.

View image on Twitter
See Cactus’s other Tweets

XRP Price: Double Top

The XRP price created a double top once it reached the resistance area at 3800 satoshis. The double top is a bearish pattern and it caused the price to immediately break down below the support area.

After the breakdown, the XRP price reached the minor support area at 3000 satoshis — created by the highs of September 18.

XRP Double Top

Moving Averages

Looking at the moving averages (MA), we can see that the 200-day moving average was a catalyst in the double top rejection — coinciding with the 3800 satoshis resistance area.

What is interesting is that after the decrease, the XRP price has…

Continue reading at BEINCRYPTO.com

3 Altcoins to Buy to Gain Exposure to Blockchain Gaming

While blockchain gaming is still very much in its infancy, there is little doubt that in-game transactions and NFTs represent one of the biggest opportunities for the crypto industry.

From major investment firms to leading cryptocurrency exchanges, everyone is looking to get in early on the blockchain gaming industry. This may be most evident by the major hackathons and multimillion-dollar funds cropping up of late, which are designed to grow various blockchain gaming ecosystems.

For the everyday crypto investor, there are some options available for gaining exposure to the blockchain gaming market. While there is a growing list of individual games and platforms launching their own tokens, the following three projects have been clear leaders in the field thus far:

Enjin (ENJ): With a $48.3 million market cap, Enjin is the largest blockchain gaming platform token on the market. Enjin is developing what it calls a “multiverse” of games where each NFT is able to cross between games, creating an interconnected ecosystem that leverages real-world ownership. The ERC-1155 token standard specifically was developed by Enjin with this functionality in mind.

The platform itself has steadily expanded over the last year and now features everything from a game asset marketplace to a universal blockchain explorer, EnjinX, which allows users to search, browse and verify ERC-1155 assets and transactions.

Enjin recently received its first equity investment from the venture arm of Blockchain, giving the project additional capital to work with moving forward.

Decentraland (MANA): With a $32.8 million market cap, MANA underpins the first virtual reality platform built on top of the Ethereum blockchain. With its unique functionality, Decentraland allows users to create and monetize content and applications that can be accessed directly through your browser or by using a VR headset.

Decentraland has been working hard to onboard developers and external game platforms through various hackathons and a full-fledged SDK. Additionally, an investment from Digital Currency Group has brought in additional capital to expand the Decentraland universe, making it one of the more intriguing speculative investments in the space…

Continue reading at SLUDGEFEED.com

This Crypto Could Rise 40% in November, Says Popular Trader

The price of Ethereum (ETH) could rise by as much as 40% in the month of November, according to analysis made by a popular trader.

Josh Olszewicz, a “self-taught trader” working with Techemy Capital, has said on social media he believes November could be am month for the leading altcoin, as its price could rise to as much as $260.

Josh Olszewicz@CarpeNoctom

183 —> 260 e2e looking likely in nov

View image on Twitter
26 people are talking about this

At press time, CryptoCompare data shows ETH is trading at $187, after seeing a near 3% rise in the last 24-hour period. Over the last 30 days it’s up by 10.6%. While the cryptocurrency rose along with most cryptos shortly after Chinese President Xi Jinping’s remarks on blockchain technology, it dropped against BTC.

In the last two weeks, Ethereum is down against the flagship cryptocurrency by around 10.1%. If it does surge to $260 the figure could change heavily in ETH’s favor, or other cryptoasset may also rise as news seen as positive keep on coming


Ethereum's price performance over the last 30 daysSource: CryptoCompare

The Intercontinental Exchange’s cryptocurrency venture Bakkt has recently hit a new all-time high in trading volumes for its bitcoin futures product, and has earlier this week announced it’s set to launch a crypto “consumer app” in the first half of next year, with Starbucks as its first partner.

Ethereum itself has seen some developments. Heath Tarbert, the Chairman of the U.S. Commodity futures trading Commission (CFTC) has revealed he believes…

Continue reading at CRYPTOGLOBE.com

3 Reasons Why Bitcoin (BTC) Price Surged 40 Percent This Weekend

Bitcoin (BTC) and crypto markets have been on fire over the past twelve hours or so. A $55 billion cash injection has lifted them out of the doldrums in one of the largest pumps in recent history. Crypto Twitter is rejoicing the move which has been largely down to the comments of one powerful man.

Bitcoin Price Surges 40+%

This time yesterday bitcoin price was lulling around $7,450, down around 9% on the week. A stack of bearish technical indicators had built up foretelling more doom and gloom for the king of crypto. Then the Chinese President made a very bullish statement on the technology that BTC is built upon. That sent bitcoin surging back into five figures.

According to Tradingview.com BTC topped out at just over $10,300 which equates to an intraday gain of around 38%. It has since pulled back during Asian trading and is currently settled at 00 which is still a gain of epic proportions.

Trader and analyst Alex Krüger said it was the fourth-largest gain in history and a monumental move that tops even those in late 2017.

4th largest gain in history and largest since May/10/2011 (if comparing against daily returns).
15th largest two-day gain in history, Nov/18/2013.

With prices back at September levels, there is renewed hope that the downtrend has been reversed and the rally which began earlier this year can resume.

Three Reasons For Bitcoin Surge

Aside from President Xi Jinping stating “We must take the blockchain as an important breakthrough for independent innovation of core technologies,” there have been a couple of other factors driving momentum for the move.

As noted by Director at VanEck, Gabor Gurbacs, the CME futures expired yesterday and the arrest of the Crypto Capital CEO may be a good result for exchanges getting some of their lost funds back.

Add to this the recent performance of Bakkt which has just hit a record day for futures contracts and you actually have four reasons why bitcoin surged. The record level of over 1,100 BTC is a new high for Bakkt which also announced that it would be launching Bitcoin options on December 9, 2019.

Altcoins Elevated

Bitcoin has been the clear driver of momentum again for crypto markets. The massive move has resulted in $55 billion flowing back into the space which has pushed total market cap back over $250 billion.

Ethereum jumped 15% to close in on $190 while XRP finally made it over the $0.30 resistance barrier in a 9% climb. BCH and BSV cranked hard with 25% apiece as Litecoin closed in on $60 adding 18% itself. EOS, BNB, Tron, Monero, Huobi Token, Dash and NEO all made solid double-digit gains.

Has another major crypto rally begun? Add your thoughts below.

Images via Shutterstock, Twitter: @krugermacro, @gaborgurbacs

The post Three Reasons Why Bitcoin (BTC) Price Surged 40 Percent appeared first on Bitcoinist.com.

Source: Bitcoininst

Will Bitcoin Ever See Another 2017-Style Bull Run?

Bitcoin (BTC) is starting to look bearish again. The recent flash-crash from the $8,000 level to below $7,500 reintroduced bearish sentiment. Now, there are expectations BTC is in a dire situation, with insufficient enthusiasm to repeat a price peak or break the 2017 price record.

Bearish Sentiment Plagues Bitcoin

The recent price drop for BTC, along with the price weakness seen since the summer months, led to bearish expectations that the leading coin may not see a new high this year. But there are also expectations that bitcoin may not see a rally like the one at the end of 2017.

A Reddit thread explained why the enthusiasm from 2017 was a one-off event. Also getting BTC to reach $50,000 or even $100,000 would require too large investments, which are nowhere to be seen, the poster commented.

“Going from $300 to $20k took about 200 billion give or take. Chump change. You guys seriously think TRILLIONS are going to flow into bitcoin overnight because it’s getting more scarce”?! If people are not interested in bitcoin they don’t give a crap if it’s scarce or not,” commented u/Viruscatman.

The thread also held the bullish view – that the current negative mood and the danger of capitulation were actually a sign of a surprise recovery. Also, that eventually the crypto space would attract enough investment to push bitcoin to $50,000.

But since July, the climate surrounding Bitcoin worsened. According to The Modern Investor YouTube channel, the downturns in BTC prices and the worsened mood were due to the crackdown against Facebook’s Libra.

Libra Created a Mix of Hype, but Invited Heightened Regulations

The announcement of Libra preceded the biggest yearly rally for BTC so far. But the news that Libra may be delayed, or never launched, also invited increased scrutiny of both BTC and other crypto networks. After Mark Zuckerberg’s latest hearing before the US House of Representatives, Libra seems to be in a gridlock. Zuckerberg stated he would aim to fulfill all current regulations, but the comments of congressmen suggested that there may be a need to pass new legislation specifically targeted to Facebook’s case.

The other rationale behind the popping of the BTC bubble was the launch of the US-based futures markets by the CME and CBOE market operators. Christopher Giancarlo, former head of the Commodities Futures Trading Commission, also stated that the launch of futures trading was an intentional move to pop the exorbitant climb of the BTC market price.

BTC traded at $7,506 ahead of the weekend, returning to daily volumes of $15 billion. The current price relies heavily on Tether (USDT) pairings. Back in 2017, USDT minting was just starting, and even small-scale stablecoin trading had an immense effect on prices, leading to a series of thousand-dollar days. Currently, even with millions of USDT injected, the price cannot make similar gains, due to the higher market volumes and a more diversified set of exchanges.

What do you think about BTC having another shot at price records? Share your thoughts in the comments section below!

Images via Shutterstock

The post Will Bitcoin Ever See Another 2017-Style Bull Run? appeared first on Bitcoinist.com.

Source: Bitcoininst

3 Likely Reasons Why Bitcoin Price Crashed — And What’s Next for BTC?

The moment many traders have anxiously anticipated arrived this morning as Bitcoin price (BTCplunged below $7,800 and eventually settled near $7,400. It’s possible that the bleeding isn’t over yet and investors will likely wait for the 4-hour and daily close before making any strong moves.

Many traders anticipated a decisive move occurring sooner than later simply based on the fact that Bitcoin has been bouncing around in the $7,800 to $8,300 range since Sept. 26 and the digital asset’s consistent failure to sustain above $8,200 to $8,300 suggested that momentum was waning.

Let’s explore several reasons that caused the price of Bitcoin to suddenly plunge today.

1. Technicals: support finally gives after 9th try

Since dropping from $9,500 on Sept. 24, Bitcoin has dropped below $7,800 on eight separate occasions and today’s price dump is the ninth. So from a technical point of view, Bitcoin was already biased towards bears on the short-term timeframe and this bias has also steadily increased on the longer time frames.

Today’s price dump liquidated $200 million worth of leveraged longs at BitMEX. According to twitter analyst “taiwandan” the Bitcoin liquidation at BitMEX could have begun with a 3,600 BTC sale at Bitstamp. Taiwandan said that “every bid from $7,800 to $6,200 wiped out in less than 15 minutes.”

BitMEX XBT USD Liquidations. Source: Skew.com

Data from TradingView also shows that price dramatically fell at Bitstamp shortly before cascading significant price drops occurred at other major exchanges.

Bitstamp BTC USD 1-minute chart. Source: Tradingview

Interestingly, data from Skew also showed that open interest was coming close to a multi-month high of 110,000 BTC ($900 million) and this figure peaked one hour before the dump occurred.

Exchange BTC Futures Open Interest ($bln). Source: Skew.com

2. Mr. Zuckerberg goes to Washington

Similar to traditional markets, the crypto sector is heavily influenced by media and it’s possible that recent news might have exacerbated the shock to Bitcoin’s price.

Today, Facebook CEO Mark Zuckerberg is testifying before U.S. lawmakers about the Libra project, political ads, and the proliferation of fake news on the platform. It seems every time the U.S. Congress discusses cryptocurrency, Bitcoin’s price drops.

Adding to the fear, on Oct. 22, U.S. congresswoman Sylvia Garcia presented a draft bill proposing that all stablecoin be categorized as securities. If passed into law, all stablecoins and their issuers would fall under the jurisdiction of the U.S. Securities and Exchange Commission…

Continue reading at COINTELEGRAPH.com